New Delhi sources reported that part of a Rs
9,400-crore package for electric and hybrid vehicles, the government may
offer incentives of up to Rs 2.5 lakh to those scrapping old petrol- or
diesel-fired vehicles along with sops for investment to manufacture parts such
as motors in the country. Meanwhile the buyers of electric two-wheelers that
cost up to Rs 1.5 lakh will get incentives of around Rs 30,000, a
draft policy formulated by the government has proposed.

Accordingly there are, however, more sops for cab aggregates and
bus fleet owners. Moreover the buyers of electric cars, which will run as
taxis, are expected to get sops of Rs 1-5-2.5 lakh for vehicles that cost up to
Rs 15 lakh.

As per report the same sops will be available to individuals buying
electric cars, provided they scrap their pre-BS III vehicles and get a certificate
from the approved scrapping centre. Furthermore the plan awaiting government
approval is likely to come as a major setback to the automobile industry,
which is working out its strategy based on the assumption that the Centre will
offer incentives to make all types of electric vehicles more attractive.

Why Tata Motors stopped production of Indica and Indigo?
New Delhi sources stated that Home-grown automaker Tata Motors has stopped the production of its compact sedan Indigo and compact hatchback Indica impacted by low sales and stiff competition in the segment, according to a company executive close to the development.